– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee
Several weeks ago, there was a discussion on rules of thumb for valuing bred beef heifers. This led to a question this week about rules of thumb related to valuing bred cows and their appreciation and depreciation.
There are no rules of thumb, but there was some research performed at Oklahoma State University that can be helpful in determining bred cow value. The study found several factors including animal age, weight, overall quality, stage of gestation, hide color, and time of year influence price. Based on the study findings, bred heifers and three year old animals have the highest value, but bred cows hold their value fairly well until age six. Bred cow values increases the longer bred an animal is and the heavier she is.
There are some rather useful details in the study that can be used to assist producers in determining bred cow value as well as make management decisions to reduce value loss due to depreciation. The complete study can be found at the following website https://www.cambridge.org/core/services/aop-cambridge-core/content/view/B86DA932FD2E964ECF4FFD31680C0EB9/S1074070817000207a.pdf/price_determinants_of_bred_cows.pdf.